Land Price and Intra-Country Industrial Relocation in China -- Theory and the Yangtze Delta Area Case
The Chinese Economy, Vol. 46, No. 2, March-April, 2013, pp. 54-73
Posted: 1 Oct 2013
Date Written: April 15, 2012
This study investigates the major role played by the high land price in the current massive intra-country industrial relocation from coastal to inland areas in China. It develops a conceptual model to explore the causalities between urban expansion, land price and coastal-to-inland business relocation. We demonstrate that the relocation is mainly driven by the high land price that results from urban expansion. We have conducted our research based on in-depth field studies in several representative relocating firms in the Yangtze Delta area. The findings derived from these case studies not only support the theoretical model but also empirically validate the hypothesis.
Keywords: Industrial, Relocation, Land Cost
JEL Classification: R10, O57, R14, R3, O18
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